Econ task force focuses on dock space, fuel prices and expansion of alia fleet

Overhaul the ASG owned shipyard, expand the local alia fleet to become more self sustainable and develop the local fishing industry for export — these are some of the fishery development recommendations cited in the Economic Development Implementation Plan (EDIP) prepared by a government task force whose goal is finding ways to boost economic growth.

 

SHIPYARD AND PORT

 

According to the task force, the Ronald Reagan Marine Railways shipyard needs an overhaul to maintain commercial fishing vessel needs. It also needs to expand commercial and passenger vessel operations through additional dock space.

 

Prior to considering privatization, infrastructure needs of the shipyard require to be addressed by the American Samoa Government, it says. (Samoa News should point out that the shipyard last year underwent major renovation to the current slipway and the governor this year wants the shipyard to be privatized, with the board going through the processing of documents for the governor’s approval before the project is put out for bid.)

 

To achieve the goal for the shipyard, the EDIP suggests having a task force provide a plan to advise the infrastructure needed to maximize the shipyard property. “When completed, seek the Governor’s approval to seek federal funding to support infrastructure,” it says and recommends looking at federal money and other monies as funding sources to assist with improvements.

 

The task force also says that American Samoa needs more dock space to accommodate vessels, adding that local longliners are currently moved around to all areas of the harbor to accommodate harbor activity because there is often not enough space.

 

“This discourages commercial vessels to come to American Samoa to perform activities,” the task force said and recommends a review of the current Master-Port-Plan for the Pago Pago Harbor, which considers additional dock space for vessels.

 

“Adding dock space will promote vessel and local business opportunities to engage with these vessels,” it says and suggests looking at the federal government for sources of funding to achieve this. (The governor last year appointed a task force to look at ways to help the local longliner fleet, which also sought more dock space.)

 

According to the report, competitive fuel pricing can also lure vessels to American Samoa. “With fuel diversification and lower fuel rates, vessels traveling within the South Pacific will be attracted to American Samoa,” it says and recommends that the territory look at opportunities to lower fuel prices and diversify fuel options such as importing LNG (liquefied natural gas).

 

“This may also require an analysis on the Fixed Fees, Rent and Taxes where cost can be reduced on the MAP,” (which is the maximum allowable price, or the wholesale price of gas released twice a month by ASG’s Office of Petroleum Management) says the report.

 

ALIA FLEET EXPANSION

 

The task force encourages local alia fleet expansion to become self-sustainable and add more business opportunities locally. It recommends an upgraded design and capacity of local alias and longliners to meet Tri Marine International, StarKist and local market requirements for high value fresh fish as well as cannery grade fish.

 

Another recommendation is to identify and recruit viable funding and soft financing such as the Economic Revolving Loan Fund, USDA Rural Development money, and the US Economic Development Administration for financing and targeted upgrade of local alia and longliner vessels, equipment, operations, fishing technology, and business training.

 

Additionally, it suggests designating and developing a mooring dock for local longliners and alias.

 

EXPORT OPPORTUNITIES

 

The task force recommends development of local fishing opportunities for export that will also boost local economic growth. To achieve such a goal, the task force suggests providing equipment, services and materials to local fisherman; and educating and training them in more efficient ways to fish and subsequently, they will export fish to U.S. and other Pacific countries.

 

Further, it recommends developing more marketplaces for fisherman; promoting training of local labor to eliminate the need to import skilled laborers; and providing storage facilities at the main dock and the airport to assist with selling and exporting goods.

 

It also recommends that ASG:

 

•            Create opportunities for increased airfreight service of high value tuna products to America and foreign markets.

 

•            Attract additional air service providers to increase capacity and frequency of high value tuna products to American and foreign markets.

 

BACKGROUND

 

Samoa News notes the EDIP report does not mention the current problem of non-access by longliners to local fishing grounds, i.e. within the 50-mile zone of American Samoa. Owners of longliners say their vessels would use less fuel, if they had access, as it’s one of the highest expenses for their fishing vessels — helping to ease their bottom line.

 

A federal study conducted for the Western Pacific Regional Fishery Management Council found that American Samoa longline fishery “earned scant profits during 2009” and had  “worsened considerably by 2013” as the local fleet put their boats up for sale, citing among other things the low price for albacore and the high price of fuel. (Story published in Tuesday, June 26, 2014 edition.)

 

According to the local Tautai-O-Samoa Fishing & Longline Association, they are on the verge of bankruptcy and will have to sell their vessels if relief is not found soon. Many members of the association did put up their boats for sale in January of this year, and they continue to be ‘for sale’.

 

In the meantime, Bumble Bee, an American-based fishery has announced they will be opening a loining factory in neighboring Samoa — and shipping the loins to the U.S., where they can be processed and canned, and labeled as a “made in the USA” product.